New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-04-10
THE PROFITS OF AUTHORS
VIEWS OF GEORGE HAVEN PUTNAM.

VIEWS OF GEORGE HAVEN PUTNAM
DISADVANTAGES OF THE PRoFIT-sHARING SYSTEM
TEN PER CENT ROYALTIES.
George Haven Putnam the wol-known publisher,
gave the following answers to the questions OF
tribune reporter regarding the relations OF authors
and publishers and the equtaoie ois'rpuuon Oh 'no
profits of 10 aking books:
@Is the profit sharing system az known IN England.
ia use between American publishers and nuthorsP
"As Tar as / can Judge from the prao-
tice of nv own house and from that OF
the firms with whose methods | am most familiar,
should saw that 1t decidedly the exception for an
American book to be published under system OF
division of profts The principal objections to such
system are that it necesstaes no little additional
clerical labor in the keeping and In the renderngei
accounts and that II entails more risk OF msunder-
standings with the author than is incurred under any
other publishing method.
.UnGer proft-snaring system. the author who has,
ne rule no tamil arty with the details and require
ments of book featuring, has submitted u him.
from haliyear - half year statements showing what
IL has cost to print frat and subsequent editions of his
book aud setting forth the other expenses OF putting
IT upon the market He either, In the strength of bis
faith in the statements of his publisher accepts as
correct the figures submitted, or he possibly attempts
to verify them by securing quotations from other
rlner, or binders In the latter case, he may easily
misead himself and do injustice to his publishers by
having quoted to him figures which really stand for
different and an inferior class OF woodwork with
which his publishers would not have been willing TO
associate their imprint and with which he hiDself
would not have been satisfied. There are great
many ways in which book can be printed, and 1t is
OF course oil -essental that any figures which are
compared shall certainly refer TO exactly the same
thing. Ii an author decides to have his book pub
shed on the half profit SYSTEM II viii usually be wisei
for him to have figures OF cost submitted to him In
advance, in the same manner as Ii he expected to
assume the entire outlay and he wall then know what
he has to expect.
sThe author may also find difficulty in understand
ing why it has been necessary to sell the larger
portions OF his editions at special rates to the dis
tributing houses having started with the assumption
from which even old author Mr.. Besant has not
freed him .e that the publisher always received or his
books less than two thirds OF the retail price, In
TACT have had to do with intelligent authors who
based their prelim calculations OF profits on
the assumption that the publishers always received Tor
books sold the full re all price.
The cost OF rebinding volumes which have been
sent out the dealers and have been returned unsod
and damaged, and various similar items which no
np In the necessary work OF selling Tor OF trying to
sena book are also pulling and ogcther there
so many details in Connection with which explanations
are called tor that the publisher may easily under
such an arrangement, tor books which do not make n
brilliant success. expend in valuable time much more
than his share OF tho possible profits. II ia doubtless
tor considerations OF this kind that American pub
fishers have the majority OF cases. arranged to pay
their authors by royalties, or to compound slch
royalties by the purchase outright OF tho copyright
THE RELATION OF ROYALTIES TO PROFITS
{" Is there any complaint, tar as yon know among
Amelic authors that their royalties are too low ~
"The question ia occasionally raised whether the
profits from these sales of any Particular work do not
permit larger rate Of royalty than tho customary 10
per cent of the retail price. If were an author, |
should be inclined to take tho ground that this rate
which doubtless represents average between what
/. c,bi on he 3
fully earned by the successful books sometimes
works injustice to the authoIs whose WORKS sell wei,
Tor benefit OF authors the sale OF whose works "a
nconsiderablo although curiously enough 1t Is from
the latter class that such complaints arise arc most
frequent The principal OUTLAWS in getting a book
upon the market are made in connection with ths frs
5000 or the first 1000 copies. When book has
passed the poiGt OF say jOJO copies and Is still In
steady demand, the PROFITS on the sale OF subsequent
thousands larger. and these latter somewhat
higher rate may properly te paid An author whose
Looks are OF such character AS TO secure without
the necessity OF issuing them IN paper form ut a mere
manufacturing profit continued sale extending over
10000 copies, is usually in position to arrange Tor
CHER than the normal rate oil royalty.
eli however. tho work IA fiction, and IL IL con
.dered desirable for the sake OF competing with the
cheap reprints OF foreign works to issuo II in paper
torn, tho margin OF profit becomes as IA rulo
too. inconsiderable TO permit paying the
author ANYTHING more than 10 per cent aud sue h
v,lumes there often remain. TOR the publisher ate
the copyris ht Is paid, considerably less than 10 per
cent.
Ths rate OF per cent OF the retail price has been
arrived at far average royalty on tho calculation
that il represented about one-hulf the not profits
remaining after the cost OF printing. adver Using and
putting the book upon the market had been covered.
As faot however, the 10 per cent represents les
than halt the profits OF volume securinga largo
sale, while 1t represents more. aud soneti mes much
more than hall the profits on volume the sale OF
Nhioh il moons derabe. II tho royalty IL paid all
CONES sold and the sale Is less than 1000 copies,
tor low priced book or an illustrated book. loss than
900 or 300 there is a loss nstei al OF profit.
loss which IL OF course increased by the amount of
ROY atty paid to the author. H. therefore than
&c per should be credited on the sales OF
fu, works land there are case, IN -hch such higher
rate certainly equitabie. less than 10 per cent
ought to be credited the books which just pay
them .elves, or which produce deficiency For the
deicenc y-pruducng books the authors properly
entitled to compensation from the publishers. Pay
ment Tor work cannot be made in proPOi ton TO tbs
labor has cost but in proportion to the extent OF the
pub lie demand Tor it. first book, therefore, which
must usual, be experiment, ought net 10 receive
copyright until enough copies usually 1000, have
been sold return the first cost. When profit has
been secured it would then be in order TO pay royalty
also the first LOCO.
alt ia also the case that 0 per cent of tho retail
price represents under American methods OF trade.
larger proportion OF tho net price received by he
publisher than is the with an English work. The
great OF the territory which has 10 be reached
In order 10 bring book before the American public
causes the outlay travelling saesmen freight
etc., to be much heavier than IN and results also
In the distribution mach larg,r portions OF the
| editions through jobbing houses. These later
purchase their large supplies OF current books at
IRON 55 TO 80 por cent OF tho retail prices. The
discounts given to obbng houses have IN late years
steadily Increased, ana during the Season OF 1886 Tor
larger proportion of their sales than before, the
publishers received the lower n It price named For
books SO sold the authors royalty. therefore. Is 20
per cent OF tho Wholesale price, and Is often
than hall the net profit
AMERICAN AUTHORS DO NOT COMPLAIN
@Do you know OF complaints among American
authors to the effect that their publishers accounts Of
sales are not trustworthy
al have myself met with such complaints, and
have rarely heard OF the existence OF any. One
evidence that American authors IA n rule Satisfied
tao